Post on 26-May-2020
transcript
2013 AWS Worldwide Public Sector Summit Washington, D.C.
The Total Cost of (Non) Ownership in the AWS Cloud
Ben Butler | butlerb@amazon.com | @bensbutler
Sr. Manager, AWS Marketing
2013 AWS Worldwide Public Sector Summit
AWS Platform – Go Global in Minutes
2013 AWS Worldwide Public Sector Summit
The AWS Price Reduction Philosophy
Ecosystem
Global Footprint
New Features
New Services
Infrastructure Innovation
More AWS Usage
Economies of Scale
Lower Infrastructure
Costs
Reduced Prices
More Customers
More Infrastructure
2013 AWS Worldwide Public Sector Summit
AWS Pricing Philosophy
• Pay as you go
– No minimum commitments or long-term contracts required
– Capex -> Opex
– Turn off when you don’t need it
• Pay less per unit when you use more
– Tiered Pricing and Volume Discounts
• Pay even less when you reserve
– Reserved pricing
• Pay even less as AWS grows
– Efficiencies, optimizations and economies of scale result in passing the
savings back to you in the form of lower pricing
Comparing IT costs on-premises
vs. cloud isn’t easy
2013 AWS Worldwide Public Sector Summit
2013 AWS Worldwide Public Sector Summit
AWS Includes Everything in the Price
Hardware
Vendor
Offering
2013 AWS Worldwide Public Sector Summit
Fixed Cost Factors One-time Upfront Monthly
AWS Co-lo On-Site AWS Co-lo On-Site
Server Hardware 0 $$$ $$ $$ 0 0
Network Hardware 0 $$ $$ 0 0 0
Hardware Maintenance 0 $$ $$ 0 0 0
Software OS 0 $$ $$ $ 0 0
Power and Cooling and Data Center Efficiency
0 0 $$ 0 0 $
Data Center/co-lo Space 0 $$ $$ 0 0 0
Personnel (Administration) 0 $$ $$ $ $$ $$$
Storage and Redundancy 0 $$ $$ $ 0 0
Bandwidth $ $$ $ $$ $ $
Resource Management Software 0 0 0 $$ $ 0
Take all the fixed costs into consideration
2013 AWS Worldwide Public Sector Summit
Use our TCO Calculator to Compare Costs
2013 AWS Worldwide Public Sector Summit
Servers Think 3-5 year time frame
Use Heavy Utilization Reserved Instances
for more apples to apples comparisons
HW maintenance starts at 10%
Don’t forget your VM maintenance costs
Storage
Network
Environment
Administration
2013 AWS Worldwide Public Sector Summit
Utilization rarely exceeds 60%
Eleven 9s of durability in at least 3
datacenters with Amazon S3
Less expensive at every tier
Servers
Storage
Network
Environment
Administration
2013 AWS Worldwide Public Sector Summit
Buying fixed ISP bandwidth means waste
Administration costs and hardware costs for
your network
More bandwidth gets less expensive in AWS
Redundancy for free: AWS aggregates
bandwidth from multiple Telco providers
Servers
Storage
Network
Environment
Administration
2013 AWS Worldwide Public Sector Summit
Rent, power, cooling, cabling – all that stuff
With colocation providers – you are buying less
than a full rack
Datacenters were built for last decade’s
equipment – prepare for upcharges
Servers
Storage
Network
Environment
Administration
2013 AWS Worldwide Public Sector Summit
Hardware requires specialty skillsets at premium rates
Lack of automation options = focus on provisioning resources rather than innovating
4X improvement in server to admin ratio going to AWS
Servers
Storage
Network
Environment
Administration
2013 AWS Worldwide Public Sector Summit
When calculating TCO…
1. Start with a use case or an application – compare apples to apples, capacity utilization, networking, availability, peak to average, etc.
2. Take all the costs into consideration
(Don’t forget administration, maintenance, and redundancy costs)
3. Use Updated Pricing (compute, storage, and bandwidth)
Price cuts, Tiered Pricing, and Volume Discounts
4. Use variable capacity and reserved instances where they fit the business needs
5. Intangible Costs – Take a closer look at what is built in with AWS – security, elasticity, innovation, flexibility
Cost Optimization Tips
2013 AWS Worldwide Public Sector Summit
Tip 1: Pay for what you use
When you turn off your cloud resources,
you actually stop paying for them
2013 AWS Worldwide Public Sector Summit
Auto Scaling: Demand or Schedule Based
2013 AWS Worldwide Public Sector Summit
Setting Threshold
Set Alarms
2013 AWS Worldwide Public Sector Summit
Configure Action
Take automated actions
2013 AWS Worldwide Public Sector Summit
• Review the amount of memory
and CPU
• Select an instance that
provides enough buffer to meet
your requirements
• Only scale to a larger instance
when needed
2013 AWS Worldwide Public Sector Summit
Tip 3:
2013 AWS Worldwide Public Sector Summit
2013 AWS Worldwide Public Sector Summit
On-Demand
Pay for compute
capacity by the hour
with no long-term
commitments
For spiky workloads,
or to define needs
Reserved
Make a low, one-time
payment and receive
a significant discount
on the hourly charge
For committed
utilization
Spot
Bid for unused
capacity, charged at a
Spot Price which
fluctuates based on
supply and demand
For time-insensitive or
transient workloads
Free Usage Tier
The Free Usage Tier
can be used for
anything you want to
run in the cloud:
launch new
applications, test
existing applications
in the cloud, or simply
gain hands-on
experience with AWS.
AWS offers Many Pricing Options To Fit Workloads
2013 AWS Worldwide Public Sector Summit
Free Offering
• Goals
• Implementation
Premium Offering • Goals
- Optimized for faster response times
- No Delays
• Implementation
- Invest in RIs
- Use on-demand for elasticity
- Spot if can’t get capacity
2013 AWS Worldwide Public Sector Summit
To: AWS Customer
From: Amazon Web Services
Subject: Potential Cost Savings
Dear Customer,
We have identified $49,000 of potential
savings in your current AWS deployment.
-Amazon Web Services
To: AWS Customer
From: Amazon Web Services
Subject: Potential Cost Savings
Dear Customer,
We have identified $49,000 of potential
savings in your current AWS deployment.
-Amazon Web Services
To: AWS Customer
From: Amazon Web Services
Subject: Potential Cost Savings
Dear Customer,
We have identified $49,000 of potential
savings in your current AWS deployment.
-Amazon Web Services
Obsessed with Helping Customers Save Money
• AWS Trusted Advisor
– Cost optimizations
– Security & Availability checks
– Performance recommendations
• 329k Recommendations
• $290M in Annualized Savings Recommended
• $22M Acted Upon
2013 AWS Worldwide Public Sector Summit
Proactive Cost Optimization with Trusted Advisor
2013 AWS Worldwide Public Sector Summit
Resources
AWS Pricing Whitepapers
• Total Cost of (Non) Ownership of Web
Applications in the Cloud
• How AWS Pricing Works
• Reports from IDC and Forrester
Research
– http://aws.amazon.com/whitepapers
Economics Center
• Simple Monthly Calculator
– http://aws.amazon.com/calculator
• Total Cost of Ownership from 2nd Watch
– http://aws.amazon.com/tco-calculator
• 7 Reasons customers are saving $$$
2013 AWS Worldwide Public Sector Summit
“By providing references to S3 objects instead of downloading large datasets,
NDAR expects at least a 10x savings in data storage costs in 2014. Additionally,
access to hundreds of terabytes of data is near instantaneous, much more secure,
and provides a platform for the reuse of computational pipelines.”
-Dan Hall,
National Database for Autism Research
National Institutes of Health
Thank you!
Ben Butler, Sr. Manager, AWS Marketing